Aerovate Therapeutics(US:AVTE)2022-03-29 16:00Company Classification and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain exemptions from disclosure requirements until it reaches total annual gross revenues of $1.07 billion or more [436]. - The company has opted out of the extended transition period for complying with new accounting standards, meaning it will adopt new standards at the same time as public companies [439]. - The company has taken advantage of reduced reporting burdens in its quarterly report, providing only two years of audited financial statements [437]. Financial Strategy and Earnings - The company has not declared or paid cash dividends on its capital stock and intends to retain future earnings to finance growth and development [442]. - The company expects to incur significant legal, accounting, and compliance costs as a public entity, which may divert management's attention from core business activities [443]. Risk Factors - The company is exposed to interest rate risks related to its cash and short-term investments, but does not anticipate significant impacts from interest rate changes due to the low risk profile of its investments [504][505]. - Inflation has not materially affected the company's business or financial condition during the years ended December 31, 2021, and December 31, 2020 [506]. - The company may face increased volatility in its stock price and potential securities litigation, which could divert management's attention and incur substantial costs [452]. Internal Controls - The company has begun the process of documenting and improving its internal controls over financial reporting to comply with Section 404 of the Sarbanes-Oxley Act [447]. - The company may not be able to maintain effective internal controls, which could harm its operating results and investor confidence [446].